Bloomberg: Chanson's 15min chart shows Bollinger Bands Narrowing and Bearish Marubozu

According to Chanson's 15-minute chart analysis, there is evidence of Bollinger Bands Narrowing and a Bearish Marubozu at 09/23/2025 11:30. This indicates a decrease in the magnitude of stock price fluctuations, suggesting that sellers are currently controlling the market and that the bearish momentum is likely to persist.

Applied Digital (NASDAQ: APLD) has experienced a rollercoaster of trading conditions in recent weeks, with significant volatility driven by insider selling, competitive pressures, and high valuations. Despite these challenges, the company's stock has rebounded, offering renewed optimism for investors.

In early September, APLD shares fell sharply, declining by 25% in less than two weeks to settle at $13.16. This decline was exacerbated by insider selling, as CEO Wes Cummins sold 400,000 shares for $6.1 million, and by competitive pressures, including Alibaba's rollout of a new AI processor. However, the company staged a remarkable recovery, with shares rebounding by 37% in the past week alone, lifting them back above $18.

The main catalyst behind APLD's turnaround was the announcement of a new leasing agreement with CoreWeave. This deal boosted the company's projected contracted revenue to around $11 billion, pushing the stock as high as $18.60. The agreement also strengthens APLD's foothold in blockchain hosting and high-performance computing (HPC), placing it in closer competition with names like Core Scientific and TeraWulf.

Despite the recent momentum, concerns about valuation remain a headwind. APLD's price-to-sales ratio of 13.5x is significantly above the industry average of 3.5x, leaving the stock vulnerable to profit-taking. However, investor appetite for AI infrastructure remains strong, with developments such as Super Micro Computer's Nvidia-powered Blackwell systems and Oracle's landmark deal with OpenAI showing the scale of enterprise spending flowing into the sector.

To sustain momentum, Applied Digital has unveiled ambitious expansion plans. The $3 billion Polaris Forge 2 data center project in North Dakota, spanning 900 acres and delivering 280 MW of power, is slated for completion in 2027. The facility is expected to employ over 200 staff and could serve as a cornerstone of long-term growth. The company also confirmed it is in discussions with a major U.S. hyperscaler, a potential partnership that could provide additional stability and credibility in the years ahead.

Applied Digital's latest quarterly results exceeded expectations, with a loss per share of only $0.03 versus estimates of a $0.14 loss. Improved performance was driven by tighter cost controls and stronger operating efficiency.

In conclusion, Applied Digital's rollercoaster month underscores the balance between opportunity and risk in the AI infrastructure race. Insider sales and elevated valuations stirred doubt, but the CoreWeave deal, ambitious expansion plans, and resilient earnings have revived confidence in its growth trajectory. With shares now trading above $23, APLD is once again commanding investor attention as it pursues bold long-term goals.